Most of the growth hormone water injection enterprises abandoned the standard and withdrew from the centralized collection of provincial alliance.
Recently, the Guangdong Provincial Drug Trading Center released the results of the proposed selection of 11 provincial alliance centralized procurement. The growth hormone included in the centralized procurement for the first time has attracted much attention, while none of the water needles with the highest price reduction voice has won the selection.
Previously, Changchun High And New Technology Industries (Group) Inc(000661) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) and Novo Nordisk, as three major growth hormone suppliers in China, rejected the inter provincial alliance. Among them, the “duopoly” Changchun High And New Technology Industries (Group) Inc(000661) and Anhui Anke Biotechnology (Group)Co.Ltd(300009) in the industry with a total market share of 91% gave up their application in the early stage, and Novo Nordisk, the only supplier registered, failed to win the election because the price reduction was lower than expected.
Just before that, on January 19, Guangdong Pharmaceutical Trading Center issued the document on centralized procurement of diclofenac and other drugs of Guangdong alliance, which confirmed that recombinant human growth hormone would be included in the centralized procurement of Guangdong alliance, and the price of recombinant human growth hormone would be limited. Among them, the price of Changchun High And New Technology Industries (Group) Inc(000661) main variety saizeng had not participated in the centralized procurement, so it was reduced by about 48%, If the drug wants to win the bid and obtain 70% of the market, the Changchun High And New Technology Industries (Group) Inc(000661) product must at least reduce the price.
Affected by this, at that time, Changchun High And New Technology Industries (Group) Inc(000661) was the leading manufacturer of recombinant human growth hormone in China, and its market value evaporated by 17.5 billion yuan in three trading days. The market was significantly worried about whether it would really enter the centralized purchase, and then Changchun High And New Technology Industries (Group) Inc(000661) also denied that the company would participate in the centralized purchase. In fact, “whether it will be included in centralized purchase” has become the number one factor affecting the short-term stock price trend of relevant enterprises.
Sinolink Securities Co.Ltd(600109) research report shows that no manufacturer of recombinant human growth hormone injection has announced the proposed winning price and proposed alternative price, and the price system of water injection is expected to remain stable. With the announcement of the pricing uncertainty of the Guangdong sector, it is expected to gradually eliminate the valuation uncertainty of the industry and promote the growth of the industry alliance.
Aojiao’s “water needle”
Growth hormone water needle, as a high-profile centralized product, has its unique product advantages.
There are three main dosage forms of growth hormone, namely powder injection, water agent and long-term dosage form. Because the powder injection is in the most original state, it can maintain stability, but the inconvenience is that it needs to be prepared into a water agent and matched with the manufacturer’s liquid stock solution. It can be injected only after it meets the standard. The water needle can be used directly, the injection method is relatively simple, and it is more convenient to carry.
Therefore, water injection is replacing powder year by year because of its biological activity, stability and convenience. Although the price of water injection is several times higher than that of powder, according to the data of Yaozhi sample hospital, water injection has occupied more than 60% of the market in China.
According to the analysis of deppon Research Institute, the barriers of growth hormone industry are high, and there is a certain technical access threshold. Kinsay pharmaceutical, the core subsidiary of Changchun High And New Technology Industries (Group) Inc(000661) , laid out the production of hormone water injection as early as 2005. It has been listed as the first growth hormone water injection preparation in Asia. It is also the only biopharmaceutical company in China with a full range of human growth hormone products. Relying on its technological advantages and long-term reputation accumulation, Kinsey pharmaceutical has always maintained the absolute leading position in the growth hormone water agent industry. It is reported that Changchun High And New Technology Industries (Group) Inc(000661) accounts for more than 70% of the market in the subdivided field of water needle, and Anhui Anke Biotechnology (Group)Co.Ltd(300009) and Novo Nordisk account for about 10% respectively.
High technology threshold, high market penetration and monopoly of leading enterprises make growth hormone water needle a typical variety with high deduction rate. According to the announcement of Changchun High And New Technology Industries (Group) Inc(000661) 2019, the average selling price of each water needle is 900 yuan and the selling price of each long-term water needle is about 4000 yuan. In another announcement, the average cost of saizeng water needle is 26.17 yuan, and the average cost of long-term water needle gold saizeng is 407.28 yuan.
In the bidding documents of centralized procurement in Guangdong Province, the highest effective declared price of recombinant human growth hormone injection water needle with 30iu unit and 3ml / 10mg specification is 2950785 yuan. For the same specification of growth hormone under Kinsey pharmaceutical, the bid winning price was not less than 1000 yuan in Yunnan, Jiangsu, Shandong and other provinces. According to the calculation of Dongguan securities, if the highest effective declared price adopted by the province is adopted, its income will decline by as much as 71%.
At present, the commonly used drugs for children with growth hormone deficiency are recombinant human growth hormone, including powder injection, water injection and long-acting dosage forms.
According to the previously publicly reported data of sample hospitals, the sales volume of powder injection accounted for 38%, that of water injection accounted for 61% and that of long-term injection accounted for 1% in 2019. In terms of effect, the powder injection dosage form has the worst effect and needs daily injection, but the price is cheap, and the cost is about 20000 ~ 30000 yuan / year. There are 5 or 6 approved enterprises in China; The curative effect of water acupuncture is better, and it also needs daily injection. The price is slightly more expensive, and the cost is about 40000 ~ 60000 yuan / year. There are only three approved enterprises in China Changchun High And New Technology Industries (Group) Inc(000661) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) and Novo Nordisk; The price of long-acting water needle is the most expensive, and the cost is more than 150000 yuan / year. At present, the market pattern of growth hormone is more caused by market-oriented competition, and the use of medical insurance is still limited.
price system under centralized purchase
Centralized purchase is to solve the contradiction between high price and popularity in drug sales. Previously, Hunan Medical Insurance Bureau responded to the public’s demand for “organizing centralized purchase of growth hormone in Hunan”: the consumption of growth hormone in the province is small and will not be included in the centralized purchase plan for the time being.
Some experts explained that the reason for its “low dosage” is that the actual clinical use standard is strict, and the use demand of a large number of growth hormone is not to treat “dwarfism” and other related diseases, but to “grow tall”. Xinhua news agency also published an article earlier pointed out that growth hormone has signs of abuse, which may bring users health risks such as endocrine disorders, femoral head slippage, scoliosis and so on. However, the strong increased demand objectively does drive the enterprise performance into the fast lane.
From the perspective of product production, water needle is a new product, which has certain R & D investment cost, cost amortization and clinical advantages, making the enterprise inclined in pricing strategy. Maintaining the growth hormone price system composed of water injection and powder injection may become the common goal of Changchun High And New Technology Industries (Group) Inc(000661) and Anhui Anke Biotechnology (Group)Co.Ltd(300009) . If the two industry leaders withdraw from centralized purchase, the water needle will become a product sold in the off-site market. Both sides do not need to bear the impact of instantaneous 70% price reduction, and can work together to share the dividends in the off-site market.
The original intention of centralized purchase was to strengthen the supervision and management of centralized bidding and purchase of drugs in medical institutions, curb unhealthy tendencies in drug purchase and sales, reduce medical costs and alleviate the pressure of residents to see a doctor. Due to the particularity of centralized purchase, this kind of model is only applicable to competitive generic drugs. However, growth hormone water needle is not generic drugs, and its production technology is only mastered by several leading enterprises in the industry, resulting in the final abandonment of the bid.
For Changchun High And New Technology Industries (Group) Inc(000661) , its private hospital market accounts for 70%, and private medical institutions and enterprises also have more flexibility in pricing power.
Locality, non necessity and price flexibility. In addition, some Chinese patent medicines, especially brand Chinese patent medicines, have evaded potential centralized procurement by withdrawing from the local network.
Previously, an insider admitted to the 21st Century Business Herald reporter that the enterprise side is bound to actively participate in centralized mining, but it can not ignore the actual situation of the enterprise in order to win the bid. In the past, there has been a situation that products can not be produced due to centralized mining. If the enterprise feels that it is not well managed, it is better to withdraw from the registration early.
However, for the varieties whose market is concentrated in hospitals, there is not so much room for choice. If they fail to win the bid in centralized procurement, they will face an increasing test of survival. In the past, in the provincial centralized procurement and even national procurement, the situation of standard flow has occurred from time to time. However, based on the complexity and particularity of the pharmaceutical market, there are still large sales of standard abandonment and standard flow varieties in the centralized procurement, but the hospital use of standard flow products will usher in more strict supervision in the future.
Chen Jinfu, deputy director of the state medical insurance administration, clearly pointed out at the regular briefing of the State Council held on February 11 that the next step will be to purify the ecological environment of pharmaceutical circulation from the perspective of system and mechanism by continuously improving measures, especially incorporating supply, quality, credit and other relevant factors into the rules of centralized procurement, that is, eradicate gold sales and purify the ecology of the industry, So as to encourage enterprises to promote the rectification of the circulation industry by standardizing competition.
